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ACS Group proposes takeover of Hochtief

Spain’s ACS Group announced (16-Sep-2010) plans to submit a EUR1.3 billion takeover bid for all of the shares of Germany’s Hochtief AG, in which it currently has an ownership interest of nearly 30% (Bloomberg, 17-Sep-2010). The group proposed the acquisition be paid for by means of shares at a ratio of eight shares of ACS for five shares of Hochtief, valuing Hochtief’s shares at EUR55.68 each, 1.1% less than their closing price on 16-Sep-2010. ACS stated the exchange ratio is based on the average price of the shares in the two companies over the last three months. ACS also commented that it wants to increase its stake in the company to just above 50% “over time”, but not necessarily via the public offer. Hochtief responded (16-Sep-2010) stated it has taken note of ACS’ announcement and its Executive Board is evaluating the situation and will make an announcement with its response and advice to shareholders as soon as appropriate. [more]

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The vast majority of the Jun-2016 articles – 80% – relate to Europe. A significant source is air traffic control disputes, particularly French ATC. There have also been strikes and/or strike threats involving airport workers and ground handlers. Among European airlines, Air France has generated the most coverage for its ongoing dispute with its pilots, and it may also face a cabin crew strike. Lufthansa has not yet faced a strike by its employees this year, but has not yet reached new agreements with pilots or cabin crew after industrial action last year.

History tells us that labour's demands grow as profits rise. The apparent increase in industrial action this year could be a signal of an approaching peak in the airline profit cycle. There are other causes of unrest, such as impending French labour legislation, but the correlation reflects some history.